Vice President (VP), Operations
Salary

Compensation for VPs of Operations in the United States is generous, with average pay surpassing six figures annually ($116K). Total cash incomes of VPs of Operations run from $68K to $209K, depending on bonuses that can occasionally exceed $49K, profit sharing that reaches $31K, and some commissions of nearly $50K. This group's pay is mainly influenced by the specific employer, followed by career duration and location. A large number report receiving medical coverage from their employers and a fair number collect dental insurance. Male VPs of Operations are far more common among survey respondents than their female counterparts, who typically comprise less than one-third of the field. Job satisfaction is reported as high by the vast majority of workers. The figures in this overview were provided by individuals who took PayScale's salary questionnaire.

XTotal Pay combines base annual salary or hourly wage, bonuses, profit sharing, tips, commissions, overtime pay and other forms of cash earnings, as applicable for this job. It does not include equity (stock) compensation, cash value of retirement benefits, or the value of other non-cash benefits (e.g. healthcare).

XTotal Pay combines base annual salary or hourly wage, bonuses, profit sharing, tips, commissions, overtime pay and other forms of cash earnings, as applicable for this job. It does not include equity (stock) compensation, cash value of retirement benefits, or the value of other non-cash benefits (e.g. healthcare).

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Job Description for Vice President (VP), Operations

The vice president of operations assists their company's president with day-to-day operations. These executives develop and implement a variety of strategies to maximize profits while maintaining an acceptable level of quality, as well as work on improving the supply chain to positively impact variables such as cost, quality and delivery time. Vice presidents of operations provide oversight and guidance to subordinates, follow up on projects assigned to staff and stay up to date on their company's research and development efforts. They also need to provide timely feedback and guidance for both subordinates and to fellow executives on operations-related issues.

Vice presidents of operations must be have a thorough knowledge of their company's products and services, as well as their industry and the competition. Additionally, these executives must understand relevant government rules and regulations and industry best practices. They are often required to travel to visit clients, vendors and/or their regional offices.

Typically, vice presidents of operations have at least a bachelor's degree in a relevant field such as business, marketing or finance; a master's degree may be required or preferred as well. Additionally, these executives must have excellent leadership, communication and interpersonal skills, as well as be proficient with basic computer software such as the Microsoft Office suite. Industry-specific credentials may be required, and proficiency or fluency in a second language may be needed as well.

Vice President (VP), Operations Tasks

Develop new resources and new revenue streams.

Evaluate operational processes and procedures, and develop strategies and implementation plans to improve and standardize all aspects of operations.

Provide leadership for the overall operating performance of the business.

Common Career Paths for Vice President (VP), Operations

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VPs of Operations' salaries may rise greatly for those who assume a higher-end position such as an Executive Vice President of Worldwide Operations. The average Executive Vice President of Worldwide Operations brings home $181K per year. A common career progression for a VP of Operations is to become a President or a Chief Operating Officer. Compared to VPs of Operations, the first group earns $24K more on average, and the second group earns $9K more.

Vice President (VP), Operations Job Listings

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Popular Employer Salaries for Vice President (VP), Operations

Many VPs of Operations can be found at J.P. Morgan Chase & Co. (JPMCC), Morgan Stanley, The Goldman Sachs Group, Inc., Citibank, and Bank of America Corp. (BOFA), firms that are at the top of the field. Heading up the field in terms of compensation, Xerox Corporation offers the most; VPs of Operations earn $158K on average there. VPs of Operations will also find cushy salaries at The Goldman Sachs Group, Inc. (+$152K), State Street Corporation (+$130K), and J.P. Morgan Chase & Co. (JPMCC) (+$130K).

The lowest pay by far can be found at Citigroup, Inc. — this employer offers a median salary of $87K, just about half of the top paying company's median. Other low-paying employers include Citibank at $91K and Bank of America Corp. (BOFA) at $104K, though some VPs of Operations there earn up to $159K.

Popular Skills for Vice President (VP), Operations

This chart shows the most popular skills for this job and what effect each skill has on pay.

VPs of Operations report using a deep pool of skills on the job. Most notably, skills in Lean Manufacturing, Leadership, Strategic Planning, and Team Leadership are correlated to pay that is above average, with boosts between 15 percent and 19 percent. Those listing Accounting as a skill should be prepared for drastically lower pay. Human Resources and Customer Relationship Management also typically command lower compensation. Most people skilled in Operations Management are similarly competent in Project Management, Budget Management, and Strategic Planning.

Pay by Experience Level for Vice President (VP), Operations

Median of all compensation (including tips, bonus, and overtime) by years of experience.

VPs of Operations generally obtain higher compensation for more plentiful past experience. Salaries of relatively inexperienced workers fall in the neighborhood of $89K, but folks who have racked up five to 10 years see a notably higher median of $109K. On average, VPs of Operations make $131K following one to two decades on the job. VPs of Operations with more than 20 years of experience report incomes that are only modestly higher; the median for these old hands hovers around $147K.

Pay Difference by Location

VPs of Operations will find that San Francisco offers an impressive pay rate, one which exceeds the national average by 40 percent. VPs of Operations will also find cushy salaries in Boston (+23 percent), Houston (+18 percent), Washington (+18 percent), and Los Angeles (+16 percent). With compensation 3 percent below the national average, Charlotte is not known for hefty paychecks and actually represents the lowest-paying market.